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Updated January 24th, 2024 at 12:30 IST

Chinese ambassador calls out EU’s state subsidy investigation as unfair

Ambassador said that the EU provides subsidies to many of its companies and suggested that if China adopted a similar approach, many can come under radar.

Reported by: Business Desk
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Chinese flag | Image:Pixabay
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EU’s investigation on Chinese EV manufacturers: China's ambassador to the European Union, Fu Cong, has criticised the EU's investigation into Chinese electric vehicle manufacturers regarding alleged state subsidies, deeming it ‘unfair.’ In one of his recent interviews, Fu stated that China is participating in the probe to prevent potential trade measures between the two sides.

The ambassador said that the EU itself provides subsidies to many of its companies and suggested that if China adopted a similar approach, numerous aspects could become subjects of investigation. Last year, the European Commission initiated an investigation to determine whether punitive tariffs should be imposed, aiming to safeguard European Union producers from what it claims are cheaper Chinese electric vehicle (EV) imports benefiting from state subsidies.

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Recent reports from Reuters indicate that European Commission investigators are planning inspections of Chinese automakers, including BYD, Geely, and SAIC, as part of the ongoing probe into potential punitive tariffs to protect European EV makers.

Tensions between China and the EU have been escalating, partly due to Beijing's strengthened ties with Moscow following Russia's invasion of Ukraine. The EU is actively working to decrease its dependence on the second-largest global economy, particularly for resources and products crucial to its green transition.

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(With Reuters inputs)

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Published January 24th, 2024 at 11:49 IST

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